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NAFTA and U.S.-Mexico Cattle Trade (CRS Report for Congress)

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Release Date May 2, 1996
Report Number 96-389
Report Type Report
Authors Lenore Sek, Environment and Natural Resources Policy Division
Source Agency Congressional Research Service
Summary:

The North American Free Trade Agreement (NAFTA) was implemented in January 1994. Thus far, no clear pattern has emerged regarding U.S.-Mexico cattle trade: in the first year the U.S. trade deficit in cattle fell, but in the second year that deficit reached a record level. While some U.S. cattle producers blamed NAFTA for the record deficit, the underlying causes were devaluation of the peso, Mexico's economic contraction, and drought in northern Mexico. Lower U.S. cattle prices, which some also contend were the result of NAFTA, were the result of several factors including high grain prices and large domestic cattle supplies.
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